XML 45 R32.htm IDEA: XBRL DOCUMENT v3.20.1
Note 23 - Derivatives and Risk Management Activities
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
2
3
.
Derivatives and Risk Management Activities
 
Republic did
not
have any derivative instruments designated as hedging instruments, or subject to master netting and collateral agreements for the
twelve
months ended
December 31, 2019
and
2018.
The following table summarizes the amounts recorded in Republic’s statement of financial condition for derivatives
not
designated as hedging instruments as of
December 31, 2019
and
December 31, 2018 (
in thousands):
 
 
December 31, 201
9
Balance Sheet
Presentation
  
Fair
Value
    
Notional
Amount
  
                   
Asset derivatives:
    
 
 
 
  
 
 
 
                   
IRLC’s
Other Assets
   $
362
     $
14,586
  
Best efforts forward loan sales commitments
Other Assets
    
4
      
875
  
Mandatory forward loan sales commitments
Other Assets
    
2
      
288
  
                   
Liability derivatives:
    
 
 
 
  
 
 
 
                   
IRLC’s
Other Liabilities
   $
-
     $
-
  
Best efforts forward loan sales commitments
Other Liabilities
    
133
      
13,711
  
Mandatory forward loan sales commitments
Other Liabilities
    
83
      
9,614
  
 
 
December 31, 201
8
Balance Sheet
Presentation
  
Fair
Value
    
Notional
Amount
  
                   
Asset derivatives:
    
 
 
 
  
 
 
 
                   
IRLC’s
Other Assets
   $
410
     $
16,966
  
Best efforts forward loan sales commitments
Other Assets
    
5
      
1,639
  
Mandatory forward loan sales commitments
Other Assets
    
10
      
865
  
                   
Liability derivatives:
    
 
 
 
  
 
 
 
                   
IRLC’s
Other Liabilities
   $
-
     $
-
  
Best efforts forward loan sales commitments
Other Liabilities
    
138
      
15,327
  
Mandatory forward loan sales commitments
Other Liabilities
    
230
      
18,980
  
 
The following table summarizes the amounts recorded in Republic’s statement of income for derivative instruments
not
designated as hedging instruments for the
twelve
months ended
December 31, 2019,
2018,
and
2017
(in thousands):
 
 
Twelve Months Ended December 31, 201
9
Income Statement
Presentation
  
Gain/(Loss)
  
           
Asset derivatives:
    
 
 
 
           
IRLC’s
Mortgage banking income
   $
(48
 )
Best efforts forward loan sales commitments
Mortgage banking income
    
(1
 )
Mandatory forward loan sales commitments
Mortgage banking income
    
(8
 )
           
Liability derivatives:
    
 
 
 
           
IRLC’s
Mortgage banking income
   $
-
  
Best efforts forward loan sales commitments
Mortgage banking income
    
5
  
Mandatory forward loan sales commitments
Mortgage banking income
    
147
  
 
 
Twelve Months Ended December 31, 201
8
Income Statement
Presentation
  
Gain/(Loss)
  
           
Asset derivatives:
    
 
 
 
           
IRLC’s
Mortgage banking income
   $
47
  
Best efforts forward loan sales commitments
Mortgage banking income
    
-
  
Mandatory forward loan sales commitments
Mortgage banking income
    
(9
 )
           
Liability derivatives:
    
 
 
 
           
IRLC’s
Mortgage banking income
   $
1
  
Best efforts forward loan sales commitments
Mortgage banking income
    
(45
 )
Mandatory forward loan sales commitments
Mortgage banking income
    
(35
 )
 
 
Twelve Months Ended December 31, 201
7
Income Statement
Presentation
  
Gain/(Loss)
  
           
Asset derivatives:
    
 
 
 
           
IRLC’s
Mortgage banking income
   $
(76
 )
Best efforts forward loan sales commitments
Mortgage banking income
    
(98
 )
Mandatory forward loan sales commitments
Mortgage banking income
    
(210
 )
           
Liability derivatives:
    
 
 
 
           
IRLC’s
Mortgage banking income
   $
54
  
Best efforts forward loan sales commitments
Mortgage banking income
    
32
  
Mandatory forward loan sales commitments
Mortgage banking income
    
(157
 )
 
The fair value of Republic’s IRLCs, best efforts forward loan sales commitments, and mandatory forward loan sales commitments are based upon the estimated value of the underlying mortgage loan (determined consistent with “Loans Held for Sale”), adjusted for (
1
) estimated costs to complete and originate the loan, and (
2
) the estimated percentage of IRLCs that will result in a closed mortgage loan. The valuation of the IRLCs issued by Republic includes the value of the servicing released premium. Republic sells loans servicing released, and the servicing released premium is included in the market price.